Irish hotel chain Dalata (LON:DAL) has confirmed reports that it is in talks to buy rival operator Moran Bewley Hotels.
Deputy chief executive Dermot Crowley said the group has entered into “exclusive discussions” over the potential acquisition, which is reported to be worth in the region of €450mln.
He added that the proposed deal would constitute a reverse takeover and would be conditional on the consent of shareholders.
Dalata shares were temporarily suspended from the junior markets in London and Irish Stock Exchanges, pending the conclusion of the talks.
“There can be no certainty at this time that a transaction will proceed and we will update shareholders in due course,” Crowley said.
The firm - the largest hotel operator in Ireland with 38 sites - made its AIM debut in March.
Moran Bewley owns 10 hotels including the Red Cow Moran Hotel in west Dublin and Bewley’s in Dublin city centre.
Dalata shares were priced at €2.89 prior to suspension on Monday.